DISASTERRECOVERYTODAY. COM D I S A S T E R R E C O V E R Y T O D A Y The inspector(s) also require access to documentation related to the actual expenditures and scope of work, including: • Appropriate building permits; • Correspondence or evidence of environmental/historic review or permits; • A copy of proof of insurance, or waiver; • Copies of bid documentation and proof of payment for all contracted work, including procurement procedures/ solicitation, bidders list with a summary of bids, applicable bonds, contracts and change orders; • Summary schedules and backup for force account labor costs. During the site inspection, the inspectors gather the information required to produce a Final Inspection Report (FIR). The state then submits this report to FEMA. FEMA reviews the FIR and requests any additional information deemed necessary. When FEMA is satisfied that the stated objectives have been met, an approval letter is sent to the state. In turn, the letter is forwarded to the applicant. If any cost adjustments are required, FEMA prepares a supplemental PW or “version.” This final PW version is then obligated, and applicant funds are credited or debited. The applicant signs a final certification, the Governor’s Authorized Representative countersigns, and FEMA closes the grant. Final Audit Audits are the last hurdle of the Public Assistance process. Audit requirements, found under the Single Audit Act of 1984 (P.L. 98502), cover all federal assistance received by the state or local government. An audit is conducted by the state to ensure that all disaster costs are reconciled. A final audit is normally initiated based on certain monetary thresholds, or if there are discrepancies in the source documentation that supports an applicant’s accounting of costs. The audit process is a formal process with an entrance and exit conference. Auditors require access to cost summaries, original source documents, and other important financial records. They complete an in-depth review of an applicant’s accounting functions to document and substantiate disaster-related costs. This compares to the random sampling of source documentation carried out during final inspection. The results of the final audit are forwarded to the FEMAOffice of the Inspector General (OIG). A special purpose review or investigation is performed when unusual information about an applicant’s project is detected. Although an audit is normally a state process, FEMAmay elect to conduct a program audit of certain grants through the OIG. OIG Closeouts and audits may occur several years after an event, and in some cases due to normal attrition, those staff members involved in the original disaster recovery process may no longer be available to defend the applicant’s actions.
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